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DAVID CONNELL
Time Warner CEO Gerald Levin is not sweating regulators' concerns about his company's proposed merger with America Online; at least that's what he's saying publicly. Levin told analysts last week the company remains on track with its merger plans, and he is "highly confident of a successful conclusion."
Levin added that discussions between Time Warner and AT&T over AT&T's ownership stake in Time Warner Entertainment were proceeding constructively.
However, letters sent to the FCC concerning the AT&T negotiations tell a different story. In a recent letter to the Commission, Catherine Nolan, Time Warner's VP-law and public policy, called AT&T's assertion that it cannot sell its TWE interest unilaterally "simply untrue."
"Contrary to AT&T's assertions, the TWE Agreement provides several options for a timely exit by AT&T: 1) AT&T could sell to a third party, 2) AT&T could sell to Time Warner, or 3) AT&T could cause TWE to be reconstituted as a corporation, and dispose of its stock publicly through the registration rights process," Nolan said. "These are the exit mechanisms that AT&T agreed to when it voluntarily acquired MediaOne's interest in TWE, and no Commission action is necessary for AT&T to effectuate any of these options to achieve timely compliance with the AT&T/MediaOne Order."
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